Disclosed herein is dry film coating compositions comprising of a mixture of low viscosity hydroxy propyl methyl cellulose and modified starch as the essential component along with other water soluble polymers, diluents, plasticizers, excipients like suspending agents, pigments. lubricants, glidents, opacifiers, colours, flavours, sweeteners etc. for use in coating of pharmaceutical tablets, nutritional supplements, food products, confectionery, agricultural seeds and the like. The invention further discloses method for manufacturing such compositions and a method for coating a substrate using the invented coating compositions.